I'm not sure what you mean by "2007 excel spreadsheet" -- do you mean an .XLSX file???? The truth is that TAGSETS.TABLEEDITOR creates an HTML file, as it describes here: http://support.sas.com/rnd/base/ods/odsmarkup/tableeditor/index.html beginquote
The tableeditor tagset enables you to create HTML output with the same kind of functionality that you would get from Visual Basic .Net (VB.NET). You can easily export the output to Excel or other filetypes. Note, currently, the tagset supports Internet Explorer only. endquote
Also on the above web site, is the topic on Exporting Data, where it says that: beginquote
The EXCEL_SAVE_FILE= option saves the file as native a XLS, CSV, XML, TXT, DOC, or SLK file. Specify the appropriate extension of the file with the FILE_FORMAT= option. You can also specify whether you want Excel to open this file or save it in the background. To save this file in the background without opening Excel, use the OPEN_EXCEL="NO" option. There is also the EXCEL_SAVE_PROMPT= option, which prompts the user for a file to save. The EXCEL_SAVE_DIALOG= option opens a dialog box to save the file. endquote
The documentation here does not imply that you could save the file as an .XLSX file (which is the "new" Office Open XML format). As far as I am aware, the only way to create .XLSX files is to use PROC EXPORT or the Excel LIBNAME engine with SAS 9.2 Phase 2, as described here: http://support.sas.com/kb/32/455.html
For more help with this issue, you might want to open a track with Tech Support. they could tell you definitively whether is is possible to create an XLSX file using TAGSETS.TABLEEDITOR.